Davos - The founder of the World Economic Forum (WEF) says leaders must better coordinate their actions if they want to effectively confront risks from terrorism, global conflicts and economic volatility.

Klaus Schwab told The Associated Press "we have to confront those very dangerous developments" through international cooperation.

He said on Monday that economically "the big risk actually now is that the world moves into a cycle of deflation."

Worries about the global economy's strength and falling oil prices have prompted concerns about problems such as deflation, a downward spiral in prices that could put companies out of business.

Read: Thoughts on the oil drop

Schwab was speaking ahead of the gathering organized by WEF this week for some 2 500 of the world's financial and political elite at the Swiss mountain resort of Davos.

Read: End of the Davos Man, says labour union leader
Davos Stars: Professor Klaus Schwab-Best connected man alive